The 78-year-old former bond king has resurfaced with a call on the currency market. He spoke with Bloomberg to offer his throughts on relative value.
“Despite fiscal and political problems, I am long the pound because of an overvaluation of the dollar against all major currencies,” Gross said. “Continued large trade deficits and a ceiling on the Fed’s ability to raise rates to anticipated levels due to future recession will limit further depreciation of the pound and likely lead to future relative increases compared to the dollar.”
Earlier today, I made the case that a turn in Europe markets could be closer than most expect as politicians there reach for the covid playbook.
